So, What’s the Best Strategy?

Posted by Deb | Day Trading Journey | Wednesday 7 July 2010 12:23 am

My teacher’s tip of the day on his website was about the best strategy:  He says you should not add any contracts to a losing position, and that instead you must get out of a losing position as quickly as you can, not waiting for your stop-loss order to get caught.  (Geva, are you reading this blog?  Sometimes it seems these tips are in direct answer to things I write).

When I started trading today I was under the impression of this tip.  Only it seems this strategy does not work from me.  I entered a position, than when the market seemed to be going against me I immediately went out, and didn’t earn anything.  On my first position I made $12.5.  Than soon after I lost it.  Than I I made $37.5 and almost lost it.

What can I say?  I cannot work in this strategy.  If I try to run away from losing positions, I don’t wait enough in any position and just lose.  I see the problem in adding contracts to losing positions, but this is what seems to be working from me.  At least when I am not losing:) .  I do have yet to improve my method to reduce the losses in case the market is consistantly going against me.

Anyway, after wasting some contracts in the above method, I finally got into one better position in which I was confidant enough to stay for a while, until I did make some profit.  Now I had to exit too early because it was getting already late, and I had to bring my son back from a playdate.  With all the comissions I have to pay now for the wasted contractions I had in the begining I will have to pay some, but the net profit is about $100.

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